Forever 21 could be a step shutr to shutting down operations in the US after the brand’s operating company filed for prohibitkruptcy shieldion.
The firm shelp in a statement that its stores and website in the US will remain uncover as it “commences its process of triumphding down”.
Forever 21 was once a favourite of youthful women around the world, but it has struggled to entice customers to its shops because of rising prices and the lengthening famousity of online shopping.
The company filed for prohibitkruptcy shieldion for the first time in 2019, but a group of spendors finished up buying it thraw a combinet venture.
“We have been unable to discover a supportable path forward, given competition from foreign quick-create companies… as well as rising costs, economic contests impacting our core customers,” Brad Sell, the company’s chief financial officer shelp in a statement.
The firm shelp it would direct fluidation sales at its stores and that some or all of its assets would be sgreater in a court-supervised process.
“In the event of a prosperous sale, the Company may pivot away from a filled triumphd-down of operations,” the firm’s statement shelp.
Chapter 11 shieldion postpones a US company’s obligations to its recognizeors, giving it time to reorganise its debts or sell parts of the business.
Forever 21’s shops and e-commerce platcreates outside of the US are functiond by other licence-hgreaterers and will not be impacted by the prohibitkruptcy shieldion filing.
The quick-create retailer was set uped in Los Angeles in 1984 by South Korean immigrants.
Its inpricey, trfinireserved clothes and accessories became increasingly famous with youthful people over the next confidemand decades and the brand became a competitor of quick-create huges such as Zara and H&M.
At its peak in 2016, there were 800 Forever 21 shops around the world, 500 of which were findd in the US.
